MERCEDES DEALERSHIP PROPOSAL DOWNSIZED

Revisions to structure’s design reduce square footage, primarily in service area

The investment group that has been working to build a Mercedes-Benz dealership in Temecula for years recently modified the plans for the main structure, dropping the square footage from around 80,000 square feet to 41,675 square feet.

The architecture of the building also was revised, according to city documents.

The group includes Garth Blumenthal, general manager of Fletcher Jones Motorcars of Newport Beach, one of the highest-volume Mercedes-Benz dealerships in Southern California. The land for the dealership is near the northeast corner of the Winchester Road/Interstate 15 intersection off Ynez Road, west of the Harveston community.

Patrick Richardson, director of the city’s development services department, said the revisions to the plans were approved by his office without a public hearing per the terms of the conditions for the original development plan.

The plans were initially approved in 2008, but the project was postponed because of the banking crisis and resulting economic downturn.

Temecula has long sought a luxury car dealership to help burnish the city’s image and boost the city’s tax receipts, which are heavily influenced by the sale of big-ticket items such as cars and trucks.

Richardson said the main change to the design of the building, which he called “modern” and “clean,” is a smaller service area.

“They can expand that later on if they want,” he said. “They think they don’t need as large of a service area as they originally thought.”

The showroom where cars will be displayed and sales processed is the same size, he said.

Richardson said that as soon as the grading plans and construction plans are approved, grading could start as soon as March with construction to follow in April.

The dealership could be open in the first quarter of 2014.

Blumenthal said the building, at more than 40,000 square feet, will be 20 percent bigger than the guidelines issued by Mercedes-Benz and larger than many neighboring dealerships.

“We’re pretty optimistic about the business opportunities in the area,” he said.

The service area, although smaller than initially envisioned, will have more than 20 bays and it will be capable of servicing 75 cars a day starting out.

Blumenthal said that should be plenty of capacity and there is the possibility of expansion in the future.

When open sometime next year, the dealership will employ from 60 to 100 people, a mix of sales people, technicians and support staff.

Blumenthal said anyone interested in a position should send their résumé to the Newport Beach office to his attention.

In addition to selling the Mercedes-Benz line, the dealership will be selling pre-owned vehicles, a mix of trade-ins and cars acquired for sale here.

In Newport Beach, the ratio runs about 3-to-1, new cars to pre-owned. Blumenthal expects the ratio here could run about 2-to-1.

“It’s a very big part of our business,” he said.

Temecula Councilman Chuck Washington, a member of the council’s luxury car dealership subcommittee, said he’s not worried about the reduction in the size of the facility.

“I’m convinced they will provide a level of sales and service that meets the community’s needs,” he said, adding that it makes sense for the company to be a bit conservative when entering a new market. “You can’t blame them for being a little cautious.”

Washington said the company that built the mall showed a similar level of restraint when it entered the area, later expanding as foot traffic and demand for space by retailers and restaurants dictated.

“I think they’re going to do very well in the Temecula Valley,” he said, talking about the dealership. “They are very well-known with their facility in Newport and recognized as providing a good service. It’s a good fit, Mercedes-Benz and Temecula.”

Down the road, Washington said, it’s possible that the dealership’s opening next year could spur another luxury auto dealership to set up nearby, because there is space available for a complementary luxury auto dealer.